Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
190.0000 CONSTRUCTION CONTRACTORS—Regulation 1521
(e) FIXED-PRICE CONTRACTS
190.5000 Right to Terminate. A contract provides the buyer with a right to terminate the contract but its exercise subjects the buyer to payment obligations as a condition of termination. Upon receipt of such notice, the seller's obligation under the contract is terminated, but the buyer's duty to recompense the seller still remains to be performed. Since the right to terminate is not unconditional, the contract qualifies as a fixed price contract. 7/22/92.